During the ongoing antitrust trial, it was revealed that Google pays Apple 36% of Safari browser search advertising revenue. This detail, which emerged from the testimony of Kevin Murphy, a professor at the University of Chicago, sheds light on the financial dynamics of the long-standing partnership between the two tech giants. as per Bloomberg reporting.
Unveiling the financial terms of the Google-Apple partnership
The partnership, which began in 2002, has positioned Google as the default search engine in Apple’s Safari browser. This arrangement is particularly crucial as it influences the search engine settings on iPhones, the most popular smartphone in the U.S. The fact that it is Google’s most important default search engine agreement underscores the deal’s significance.
The antitrust implications of the Google-Apple agreement
The Justice Department’s focus on this agreement is part of a broader investigation into Google’s practices. The department is examining whether this deal is part of Google’s strategy to illegally maintain its dominance in the search engine and search advertising sectors. The revelation of the revenue share percentage is a key piece of evidence in this investigation.
The disclosure of this information was not planned and visibly affected John Schmidtlein, Google’s main litigator. Both Google and Apple had previously objected to making details of their agreement public, citing concerns over competitive disadvantages. Last week, Google argued in a court filing that revealing more information about the deal could negatively impact its competitive position.
As the trial progresses, the tech industry is closely watching the developments. The outcome could have significant implications for both companies and the broader market. Apple has not yet commented on the matter, and Google has declined to comment.